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American Senior Alliance Says Their Purpose is
“Senior Education”
By Tucker Sutherland, Editor
Jan. 27, 2005 – After months of trying to locate
the American Senior Alliance, we have been contacted by the president of
the organization, which has made mass mailings to senior citizens with a
return card to request information on “2004 Elder Law Updates,” that
seemed to promise great financial advantages.
George R. Katosic, President, says, “The Alliance
is a not-for-profit corporation whose sole purpose is senior education,
including awareness of suitable benefits and services that may be useful
to seniors.” In an email he says their office is in Richardson, Texas.
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Mystery Solved: American Senior Alliance Pushing
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Jan. 3, 2005 – Those mysterious cards going to
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Center that offer information on enticing financial opportunities are
actually disguised mailings seeking prospects that a salesman can
contact to sell annuities, according to an experienced annuities
salesman, who asked to remain anonymous.
More... 1/3/05*
“National Processing Center” Appears to Replace
“American Senior Alliance” in Suspicious Mailing to Seniors
Dec. 14, 2004 – Last month we warned seniors to be
wary of a mailing from the American Senior Alliance that made outlandish
promises of information available about “important Elder Law changes.”
Now, there is a new mailing to seniors with even more promises and the
return address is to the National Processing Center. We are reporting
both to the U.S. Postal Inspectors for investigation.
More... 12/14/04*
American Senior Alliance Should Be Viewed With
Caution
Nov. 30, 2004 - SeniorJournal.com has received many
emails concerning a mailing to senior citizens by the American Senior
Alliance, but no one has been able to locate this company, which make
excessively enticing promises in the mailing. We suggest seniors not
respond to the mailing.
More... 11/30/04*
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We have received dozens of emails from suspicious
readers about these mailings, including one from an annuity sales person
who says the purpose of the mailings is to locate prospects for
insurance sales people.
Below is the complete text of the email from
Katosic. We will let the letter speak for itself, but it does appear
they are soliciting responses they can provide to others who have
services to sell to seniors.
Mr. Sutherland:
We have become aware of your allegations concerning
the American Senior Alliance (Alliance) that have appeared on your
website, “SeniorJournal.com”. The purpose of this e-mail is to provide
you accurate information regarding ASA.
The Alliance is a not-for-profit corporation, whose
sole purpose is senior education, including awareness of suitable
benefits and services that may be useful to seniors.
It is not a membership organization. The Alliance
does not provide benefits or services to seniors. This is the
responsibility of any entity that provides benefits and services
requested by the senior. The Alliance only endorses certain products
and services that it believes are suitable for and beneficial to
seniors.
Any persons or entities providing the services or
products to seniors have no affiliation with the Alliance.
In the event the Alliance becomes aware that there
exists any concerns with any of these professional provider entities, or
their services and products, it immediately terminates its endorsement.
The Alliance is a young, but growing senior
advocacy entity that also makes charitable contributions to those
organizations that assist seniors. It is also in the process of
completing its new comprehensive website.
Please note that your allegations that the “National Processing Center”
(Washington, DC) is nothing more than a replacement for ASA is
incorrect. ASA has nothing whatsoever to do with the “National
Processing Center”. This is an incorrect assumption.
In respect to the “2004 Elder Law Updates” endorsed
by ASA to which you refer in your website, the following explanations
should clarify these statements for you:
> Seniors can apply to completely avoid all
probate and state taxes. This statement refers to the avoidance of
probate by using the “POD”, Payable on Demand endorsement on financial
instruments such that a spouse or child has immediate access to the
funds in these financial instruments. In addition, the use of the “TOD”,
Transfer on Demand endorsement accomplishes the same probate avoidance
in respect to stocks and bonds. In addition, a revocable living trust
is an instrument used by many seniors to avoid probate by transferring
their entire estate through the trust. Further, life insurance
and
annuity proceeds can be passed directly to beneficiaries thereby
avoiding the probate process. In respect to estate tax avoidance, this
can be accomplished by the use of a living trust with and A-B split
thereby raising the estate tax exemption from $1,500,00 to $3,000,000,
which is a complete exemption for most all seniors. In addition, estate
tax avoidance can be accomplished by the purchase of a life insurance
policy for a relatively inexpensive premium. The death benefit pays any
estate tax liability of the estate.
> Exempt assets from collection by government
or nursing home if ill. This refers to “Medicaid Annuities”. In
accordance with IRS Transmittal No 64, an “actuarially sound annuity”
can be used to exempt assets from collection. The mechanism is the
purchase of a deferred annuity, which is annuitized by the nonconfined
spouse. These monthly annuity payments are exempt assets that cannot be
attached by the government or a nursing home and does not disqualify the
confined spouse from care and treatment. An “actuarially sound annuity”
is a deferred annuity that is irrevocable, nontransferable and
unassignable.
> Earn double or triple interest of CD’s with
no risk to principle. This statement refers to both deferred
annuities and equity-indexed annuities, which increase to a certain
maximum percentage as the stock market indexes rise, but if the stock
market declines the accumulated funds can never fall below the principal
amount in the annuity at certain particular times. The owner can never
lose the principal amount deposited. Equity-indexed annuities are the
most popular and voluminous annuity sold on the market today. Without
question, they have produced substantially greater returns than bank
CD’s as have regular deferred annuities. Like all annuities, they
contain surrender penalties, but their owners can normally withdraw up
to ten percent (10%) of the accumulated funds annually penalty-free. In
addition, there are other certain conditions set forth in these
annuities, like medical emergencies, that permit greater penalty-free
withdrawals. Of course, the earnings in the annuity accumulate tax
deferred unlike bank CD’s.
> As a U.S. citizen you may now learn how to
qualify without any cost to you. This statement simply means in
this particular situation that a senior can meet and consult with a
financial planner, estate planner and/or retirement planner for a review
of his/her retirement/estate/financial situation and, if appropriate,
take advantage of some or all of the techniques mentioned in the
mailer. These advantages are available under Federal or state law;
i.e., Federal estate taxes and state probate law.
Since you now have been advised of all of the facts
concerning ASA, we believe that as a senior advocacy entity, you will
most certainly want to provide your readers the facts concerning the
Alliance as set forth herein since that is the only equitable manner in
which to rectify the false, misleading, and defamatory statements that
you have been publishing.
We appreciate your time and attention to this
matter and look forward to reviewing your website concerning the correct
information concerning ASA. In the event you have any questions. Please
contact us.
George R. Katosic, FLM, AIRC, ASC
President,
American Senior Alliance
Administrative offices
300 N. Coit Rd, Ste. 1050
Richardson, TX 75080
Office (972) 664-9170 -
Fax (972) 664-9165
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